How to Buy Spotify Stock (SPOT) in 2023 – Complete Guide

This guide discusses in detail how to buy Spotify stocks. It will introduce you to the best Spotify stock brokers and tell you what factors to consider when choosing a broker. We will then analyze the stock investment process, covering each step, in detail. You’ll learn how Spotify works, its financial position, its historical stock price performance, and the factors that should affect SPOT’s stock price in 2023 and beyond.

Spotify is one of the most popular brands in the world of music and podcasting. It is very popular with both artists and listeners. In less than a decade, it has evolved to become the world’s largest audio streaming platform and media service provider.

By the end of this guide, you will have learned everything you need to know about Spotify and its stock price. You will also have decided whether it is worth buying SPOT shares in 2023.

How to Buy Spotify Stocks (SPOT) – Overview

Here is the step-by-step Spotify stock buying process that has been embraced by most online trading platforms out there. It’s simple and you don’t need the help of experts to buy your first Spotify stock.

• Step 1: Create a stock trading account – Start by finding a highly regulated and reputable broker that lists Spotify stocks. Create a stock investor with them. Most will only ask for your basic personal information and trading experience.
• Step 2: Verify your identity – Any regulated broker you want to create an account with will ask you to verify your identity before you can fund the account or use it to buy SPOT shares.
• Step 3: Deposit funds – Proceed to fund your account. Note that how much you deposit into the account will be determined by the deposit set by the broker and the trading minimum. Confirm these amounts and the payment methods supported by the broker when searching for the best Spotify stock broker.
• Step 4: Buy Spotify shares – Search for Spotify shares from the broker’s list of supported shares and open a buy order for the music company’s shares.

That’s all! By following these simple steps, you can buy Spotify stock in less than 10 minutes.

Below, we explore this stock investment process and cover each stage in detail. Let’s start by helping you decide where to buy Spotify stock in 2023.

Step 1: Decide where to buy Spotify stock (SPOT)

Spotify is a popular stock and a significant component of multiple indices and ETFs. This helped him list with some of the most popular stock trading platforms – complicate the choice of where to buy Spotify stocks.

But to help you in your search for the best Spotify stock broker, our analysts have identified a few factors you should look for when looking for the best SPOT broker. Here are some of them:

• Pricing: Compare the pricing model of different brokers and register a stock investor account with the most convenient brokerage. Check fees, commissions and other charges (both commercial and non-commercial) and assess their impact on the profitability of your SPOT stock trades.
• Regulation and reputation: You will also need to register only with a regulated broker of impeccable reputation. Check online reviews and confirm customer service, reliability and efficiency.
• Account Minimums: Some brokers support fractional stock ownership. Others have higher deposit minimums for such payment methods as banks. Compare the trading and deposit minimums set by different brokers and register with the most convenient.
• Security: Confirm the security measures placed around your personal data and funds from your preferred broker. Ideally, the broker should insure your deposits with the likes of FDIC and FSCS, maintain a segregated bank account for client deposits, and enforce strict controls on accessing and sharing sensitive client information.
• Trading platform: The ideal broker should maintain a highly navigable and easy-to-use trading interface. It should also integrate sufficient tools and resources for trading, education, analysis, research and risk management.

Our analysts have analyzed dozens of highly reliable stock trading platforms, so you don’t have to. And they opted for the following two as the best places to buy Spotify stock in 2023.

How to buy Spotify stock (SPOT) eToro is one of the most popular online trading platforms – targeting 25+ million investors worldwide. It is multi-regulated, highly reliable and supports 5000+ trading instruments. In addition to buying Spotify shares on eToro, you can also trade 3000+ local and foreign stocks, ETFs, commodities, indices, forex and cryptocurrencies. The broker also maintains one of the friendliest onboarding processes and trading interfaces.

This trading platform is also highly innovative and integrates a wide range of tools and resources that make it attractive to both beginner and experienced traders. These include educational resources such as how-to guides, webinars, and a free demo account. They then extend to premium analysis and trading tools such as customizable charts and risk management tools such as stop loss and negative balance protection.

To start buying Spotify shares on eToro, you just need to deposit at least $10. This can be done via supported payment methods such as bank cards, bank transfers, and e-wallets such as PayPal.

Deposits are free, but withdrawals are charged a fixed processing fee of $5 – with the minimum withdrawal amount of $30. The brokerage is also competitively priced as it does not charge a trading fee. You will only pay a variable spread when buying SPOT shares on the platform.

We believe eToro is the best Spotify stock broker due to its social and copy trading features. Social trading enables seamless interactions between all users of the eToro platform. Copy trading, on the other hand, allows every user of the eToro platform to earn passively.

PRO investors receive a reward from eToro when they allow others to copy their trading settings. Everyone else can make money by automatically mirroring the trading settings of highly successful investors. Note, however, that you need a minimum balance of $200 – to start copy-trading on eToro.

• Capital.com – Best CFD Broker for Active Traders

Capital.com is a
very popular multi-asset online trading platform, especially among CFD traders, mainly because it is a pure CFD broker. These traders are also attracted by the main features Capital.com, including support for a wide range of instruments: stocks, indices, commodities, currencies, ETFs and cryptocurrencies. They may also appreciate the fact that the broker maintains a simple onboarding process or its multi-regulatory status and solid reputation.

But Capital.com is part of our list of the best Spotify stock brokers mainly because of its innovativeness. This is evidenced by the fact that it was among the first brokers to integrate artificial intelligence (AI) into its trading platforms. It has integrated a wide range of advanced trading, research, and education tools and resources into its platform, including 70+ analytical tools.

Equally important, Capital.com is cross-platform brokerage. This implies that in addition to its proprietary web trading platforms and apps, it supports third-party platforms such as Trading View and MT4. These present traders with more premium trading tools, and some, such as MT4, allow auto-trading and mirror-trading.

Other features that make Capital.com the best place to buy Spotify stock include its convenience, stellar customer service, and access to leverage. To begin with, Capital.com is a commission-free broker. Therefore, you will only pay a competitive and variable spread (plus a swap fee for leveraged trading) when buying Spotify shares here.

Note that leverage for CFDs on Spotify shares is limited to 1:5 in most jurisdictions. Capital.com also runs one of the most accessible customer support teams, available via phone, live chat, email, WhatsApp, Facebook Messenger and Telegram.

Step 2: Spotify Stock Search (SPOT)

Now you know where to buy Spotify shares, but before you start the buying process, familiarize yourself with the music company. Find out how it operates, how it earns, its current financial position and examine the past action on Spotify stock prices. Check if there are external forces affecting the performance of both the music company and its share price.

This helps you determine the factors that have influenced the SPOT stock price in the past. But more importantly, identify the factors that will have the greatest influence on Spotify’s stock price in the future. Pay close attention to these as they will influence your buying, retaining and selling decisions.

Here’s everything you need to know about Spotify and its actions.

What is Spotify?

Spotify is an audio streaming and media services company headquartered in Stockholm, Sweden. It was founded by Daniel Ek and Martin Lorentzon in April 2006 and has become one of the largest music streaming platforms in the world. It specializes in streaming digital and copyrighted music provided by individual artists, record labels, and media companies, as well as hosting podcasts.

By the end of 2022, Spotify had more than 82 million songs listed on the platform. It’s also home to over 4.7 million podcast titles. These helped the media company attract 479 million listeners, more than 202 million of whom are paying subscribers. The company has also extended its reach to 108 countries and territories around the world.

Spotify also has a contributor base of 11+ million artists and creators. These add an average of 1.8 million songs each month.

Spotify’s growth in virtually every niche, except market share, has been sustained since its launch. For example, between 2015 and 2022, Spotify increased the total number of listeners from 91 million to 479 million (526% growth). Its paying subscriber base also grew from 28 million to 202 million (721% growth) over the same period.

The number of artists and creators, the popularity and reach of the
company, as well as the number of songs and podcasts on the platform are also increasing. Interestingly, however, Spotify lost more than 10% of the global market share of the audio streaming and media services industry – from 41% in 2015 to 31% in 2022 – over the same period.

Spotify hosts some of the most popular podcasts in the world. The first five are Joe Rogan Experience (exclusive), Call Her Daddy, Anything Goes with Emma Chamberlain, Case 63 and Crime Junkie.

Spotify Financial Data

Spotify makes money in two main ways: subscription fees and advertising on its freemium user plan. Subscriptions account for 91% of the company’s total revenue, while paid ads bring in the other 9%.

The media streaming company has three subscription plans that attract different rates, based on your country of residence. These include the basic freemium plan (also known as the ad-supported plan), the individual plan, and the family version. In the US – the paid plan for individuals costs $9.99 ($4.99 for students), while the family plan (which houses six accounts) costs $14.99.

Like the number of users and listening, Spotify’s income has appreciated steadily over the past decade. In 2009, for example, Spotify’s revenue stood at €13.4 million and exceeded €100 million in 2011 alone. It surpassed €1 billion three years later before surpassing €5 billion after the company went public in 2018. In 2021, Spotify’s annual revenue stood at 9.67 billion euros, and in the first three quarters of 2022, the company’s revenue stood at 8.20 billion euros.

Note that Spotify only keeps 30% of this and distributes the rest to artists and content creators on the platform. In 2021, Spotify paid over 6.57 billion euros to contributors on the platform. Of these, €3.75 went to record labels, just over 1000 artists/creators received over €1 million, and around 50000 others earned more than €50,000. The company doesn’t have a fixed royalty fee per game for artists, but the per-game fee averages between €0.0056 and €0.003.

Note, however, that even with explosive growth in user numbers and annual revenues, Spotify has yet to become profitable. It consistently posted an annual net loss, with the loss for the 12 months to September 2022 amounting to €185 million.

Spotify’s Historical Price Performance

Spotify went public in April 2018 and had a benchmark price of €123. But massive interest in the media streaming company’s stock sent its price skyrocketing, with the first SPOT share selling for €155. By the end of the day, however, the rush to acquire Spotify had subsided. It closed at a market price of 149 euros, and this gave the company a market valuation of 28 billion euros.

The company’s share price, however, has been extremely disappointing as it has consistently traded below its IPO price. At the time of writing, for example, SPOT shares are selling more than 45% below the IPO price and up to 80% below the all-time high of €342 reached on February 19, 2021.

The stock began with a rally of more than €180 in the few months following the IPO listing. By December of that year, however, the rally had dissipated and the SPOT share price had fallen below €100 – for the first time. It traded between €100 and €150 throughout 2019 and into the first quarter of 2020. Like most other stocks that favored lockdown and other stocks favorable to Covid-19 restrictions, Spotify began rallying in the second quarter of 2020. It peaked almost a year later, in February 2021, when it set its current all-time high of €342.

Since then, Spotify’s stock price has taken an overall downward trend action in prices that caused this peak price to fall by up to 80% by January 2023.

Factors Affecting Spotify Share Price

The chart for Spotify’s stock price paints a picture of a highly volatile financial instrument. This could be an indicator of the many factors that affect Spotify’s stock price. In this section, we describe some of the Factors that we believe will have the greatest impact on SPOT’s share price in 2023 and beyond:

Spotify
• Net Income: You’d be right to associate the begging performance of Spotify stock with the company’s poor run on profits. To understand the impact that a profitable Spotify would have on its stock price, you just need to look at the stock price action immediately after each profitable quarter. On October 28, 2019, for example, SPOT’s share price rose more than 18% (in a single day) after news of a profitable Q3 2019 surprise.
• Number of Spotify subscribers: Spotify’s stock price will also rise if the increase in the number of subscribers – both fermium and subscribers – translates into significant revenue growth. This became clear on October 27, 2021, when SPOT’s stock price rose 8%+ (in one day) on the news that user growth had translated into a 30% increase in ad revenue.
• Industry Trends: Spotify’s poor stock price action in 2022 against the backdrop of roaring user growth could be attributed to the collapse of tech stocks. If the predicted global recession hits and the market crashes in 2023, the SPOT stock price can be expected to fall further.

Top business decisions

• : Critical business decisions, such as a sudden increase or discount on subscription fees, will also have a significant influence on the stock price. On September 26, 2022, for example, Spotify’s stock price plummeted 10% after the company announced plans to increase subscription fees.

Step 3: Open an equity investor account and buy Spotify stock (SPOT)

Want to start buying Spotify stock right now? Use this beginner’s guide to buy your first Spotify shares on the popular online broker eToro.

• Open a stockbroker account

From your browser, access the official eToro website or download the eToro mobile trader app from your phone’s app store. Tap on the “Sign Up Now” icon on both platforms and complete the user registration form that appears.

It will try to acquire basic information such as your name and phone number, email address and country of residence, trading experience and source of income. You’ll also need to choose a unique username for the account and create a strong password.

• Verify your identity

eToro is a multi-regulated broker licensed by FCA in the UK, SEC in the US, CySEC in Europe and AISC in Australia. All these bodies instruct him to subject all his clients to KYC and AML checks.

The broker will then require you to verify your identity by presenting a copy of your government-issued ID, such as a passport or driver’s license.

• Deposit funds

After eToro sends you an email notifying you of the account approval, log in to that account and press the “Deposit Funds” icon on the user dashboard. From the funding tab that opens, choose a payment method and follow the instructions to fund your account with at least $10.

• Buy Spotify Stock

Once the money is reflected in your trader account, press the “Discover” icon on the user dashboard to see the assets supported on eToro. Choose “Actions” and use the search button to search for Spotify.

Click on the “BUY” option against SPOT shares and use the trading menu that opens to customize this investment. Indicate the number of Spotify shares you want to buy or how much you want to invest in the music company.

Press the “Open Trade” button to execute this investment.

Strengths and weaknesses of Spotify shares (SPOT)

But is it worth buying Spotify stock in 2023? You need to answer this question before hitting the buy option against SPOT shares on any brokerage. And to arrive at this answer, it is necessary to compare the merits and demerits of buying Spotify shares in 2023.

To help you get started, let’s discuss some of the reasons why you might consider investing in Spotify in 2023 and others that make today not the best time to buy SPOT stock below.

Reasons to buy Spotify stock in 2023

• Undervalued: With nearly 50% below its IPO price and 80% below its all-time high – against the backdrop of rising annual revenue and user numbers – Spotify is grossly undervalued. This, then, implies that today may be the best time to choose a market leader at a disposable price.
• Market recovery: Two key factors contributed to Spotify’s performance throughout 2022, namely an extended bear market and the collapse of technology stocks. Both should eventually correct, effectively putting Spotify on the road to recovery.
• On the road to profitability: Spotify’s management estimates that a base of 1 billion monthly active users would push its revenue towards a 20% increase and put it on a path to steady profitability. With over 456 million users already booked by the end of 2022 and a monthly year-on-year active user growth of 20%, Spotify can be said to be on track to profitability.
• Business expansion: You may also want to invest in Spotify because it is continuously expanding its operations and income base. For example, it recently introduced live streaming for podcasts and will launch audiobooks soon. These are expected to attract more users, increasing its revenue (subscribers or ads) and accelerating its path to 1 billion active users.

Reasons to buy Spotify stock

• Absent market crash: Today may not be the best time to buy Spotify stock, especially for short-term traders. The predicted global economic downturn will most likely cause the stock market and SPOT stock price to crash with it.
• Increasing competition: Spotify will most likely take longer to reach its high profitability projections (1 billion MAU) if it continues to lose its market share to the competition. In particular, you’ll want to wait and see how Spotify users react to the proposed increase in subscription fees.

Conclusion – How to Buy Spotify Stock

Spotify is a very popular brand and market leader in the audio streaming industry. But a combination of factors has caused its share price to severely underperform. These include a poor run on net income, a prolonged bear market, a falling market share and the collapse of technology stocks. Towards 2023, investors are confident that a possible recovery market, user growth and the introduction of more services, as well as the proposed fee increase, will put SPOT shares on a recovery path.

Do you want to buy the shares of the media services company now? Use the step-by-step guide to buy your first Spotify title we discussed above.

FAQs of How to Buy Spotify Stock

How can I buy Spotify stock today?

Start by identifying a regulated and reputable stock broker who lists Spotify stocks and creates a stock investor account with them. Fund this account and place a buy order for the shares of the audio streaming company.

How much will Spotify be worth in December 2023?

Given the ever-increasing number of factors affecting Spotify’s stock price, no one can say with the utmost precision how much Spotify will be worth at the end of the year. However, you may want to watch out for factors like the looming recession and rising subscriber fees, as they will have a significant influence on the direction of SPOT’s stock price.

Is Spotify worth buying in 2023?

Most analysts and stock price forecasters have taken the watch-and-wait approach to Spotify stock. We also recommend that you wait and monitor the impact that significant market developments such as the performance of technology sector stocks, the proposed increase in subscriber fees, competition and the looming market downturn will have on SPOT’s share price before investing in the company, especially if you are a short- to medium-term investor.

How much should I start investing in Spotify today?

In most cases, you can decide how much you want to invest in Spotify or any other stock. However, the minimum investment amount will most likely be determined by the minimum initial deposit and trading amount limits set by your preferred broker.